Independent study shows Canadians still paying too much for generic drugs

OTTAWA, Oct. 13 /CNW/ - A new study released today by the Fraser Institute finds that Canadians continue to pay far higher prices for generic drugs than patients in the United States.

The study called "Canada's Drug Price Paradox 2010" compared 64 generic drugs available in Canada and the United States and found that Canadian prices were, on average, 90 per cent higher than their American counterparts.

"This study shows that there are still significant savings to be had for both private and public drug plans in Canada by lowering generic drug prices," said Russell Williams, President of Canada's Research-Based Pharmaceutical Companies (Rx&D). "Realizing these savings would give governments an opportunity to provide patients in Canada with improved access to the latest therapies to fight cancer, diabetes, heart disease and many other illnesses."

The study's authors make the following findings:

• Based on available data, in currency-equivalent terms, Canadian retail prices for generic prescription drugs in 2008 were 90 percent higher on average than retail prices in the United States for identical drugs.
• Of the 64 generic drugs in Canada in 2008 that were compared, 43 were more expensive in Canada, while 21 were more expensive in the United States.
• For the generic drugs that were more expensive in Canada, prices were an average of 153 percent higher than in the United States.
• For the generic drugs that were less expensive in Canada, prices were an average of 38 percent lower than in the United States.
• Retail prices for generic copies in Canada were 73 percent of the price of their brand-name medicine, compared with just 17 percent of the price of the brand-name medicine in the United States.

Lowering generic drug prices is part of the solution in making our health care system sustainable and has been lauded by several studies. For example, the federal Competition Bureau found that Canadians and our health care system could save up to $800 million a year if generic pricing was more competitive,"said Mr. Williams. "These savings could then in turn offer new hope to patients by providing increased access to the latest therapies, which can also lessen the economic burden on the health care system. A study done at Columbia University found that every dollar invested in new medicines saves the health-care system 7 dollars by reducing hospital, physician and home care costs. Our goal is to work with all governments and all sectors so that patients in Canada have access to the right medicine at the right time."

About Rx&D

Rx&D is the association of leading research-based pharmaceutical companies dedicated to improving the health of Canadians through the discovery and development of new medicines and vaccines. Our community represents 15,000 men and women working for 50 member companies and invests more than $1 billion in research and development each year to fuel Canada's knowledge-based economy. Guided by our Code of Ethical Practices, our membership is committed to working in partnership with governments, healthcare professionals and stakeholders in a highly ethical manner.

For further information:

François Lessard
Communications
Telephone: [phone]
E-mail: [email protected]